What is MEXC Pre-Market Perpetual Futures Trading?
#Basic
#Beginners
Pre-Market Perpetual Futures are a type of derivative that allow users to trade tokens before they are officially listed, with pricing denominated in USDT. By trading Pre-Market Perpetual Futures, users can get ahead of the curve by positioning themselves in new token markets early and making informed judgments about their future price trends and liquidity.
Essentially, Pre-Market Perpetual Futures fall under USDT-M perpetual Futures and will gradually transition into regular Futures once the tokens are officially listed.
1. Advantages of Pre-Market Perpetual Futures
Early Positioning: Participate in trading before the official Futures go live. Stay ahead of the market and seize first-mover advantages.
Profit from Volatility: Leverage the high volatility of popular tokens before listing to capture potential gains.
Seamless Transition to Standard Futures: Once the token is officially listed, the Pre-Market Perpetual Futures will automatically convert into standard perpetual Futures. No need to transfer positions—trading continues without interruption.
2. How to Trade Pre-Market Perpetual Futures on MEXC
2.1 Web
Open and log in to the MEXC official website. Click Futures in the top navigation bar to enter the Futures trading page.
On the trading page, click the Futures pair selector (▼) to view categories like 0 Fees, MEME, Solana Ecosystem, etc.
Select Pre-Market to view all active Pre-Market Perpetual Futures pairs. Click on the pair you want to trade and start your Pre-Market Perpetual Futures trading journey.
2.2 App
1) Open and log in to the MEXC App. Tap Futures at the bottom of the homepage to enter the Futures trading page.
2) At the top of the Futures trading page, tap the contract pair selector (▼) to switch trading pairs.
3) Under USDT-M, find and select Pre-Market. You will see all active Pre-Market Perpetual Futures pairs listed. Tap the pair you wish to trade and start your Pre-Market Perpetual Futures trading journey.
3. Risks of Pre-Market Perpetual Futures
3.1 Lower Liquidity
Compared to standard perpetual Futures, Pre-Market Perpetual Futures typically have fewer participants and shallower order books.
Lower liquidity can lead to wider bid-ask spreads and more significant slippage.
The lack of sufficient counter-parties may affect your ability to open or close positions quickly.
3.2 Higher Volatility
Due to fewer participants and less balanced orders, the market is more sensitive to price swings.
Funding Rate Volatility: With fewer index price sources, the funding rate may fluctuate dramatically, potentially offsetting profits or even leading to losses if not properly managed.
Important Reminder: Pre-Market Perpetual Futures involve higher volatility, lower liquidity, and a greater risk of forced liquidation. Prices are highly sensitive to market sentiment and information, making this a speculative product. Please evaluate your risk tolerance carefully before participating, even as we continue to improve the trading experience.
4. Pre-Market Perpetual Futures FAQs
4.1 What happens after a token's Pre-Market Perpetual Futures are launched?
4.1.1 Before Spot listing: The Futures contract remains in Pre-Market Perpetual mode and trading continues normally.
4.1.2 After Spot listing: If no abnormalities occur, the Futures contract will gradually transition into a standard perpetual Futures contract. The exact transition time will be announced separately.
During the transition period:
1) No manual action is needed: conversion is automatic.
2) Candlestick chart data and trading entry points remain unchanged.
3) Open orders and existing positions remain intact.
4) Risk parameters and index pricing sources may be adjusted.
5) After Spot listing, due to market-based price discovery, Futures prices may fluctuate sharply. Please manage your positions and risk accordingly.
4.1.3 If the Spot listing is canceled or other risk issues arise, the token's Pre-Market Perpetual Futures may be delisted. Delisting and settlement details will be announced separately.
Settlement guidelines:
- Settlements will be executed at the fair price.
- The settlement schedule will be announced in advance and displayed on the trading page.
- After the announcement, new positions will be restricted, and only position closure will be allowed.
4.2 Trading mechanism for Pre-Market Perpetual Futures
Modes: Both isolated and cross margin modes are supported and available on the Website and App. Users can choose to open long or short positions.
Liquidation Mechanism: Same as standard perpetual Futures, ensuring market stability.
Fees: Fee structure is identical to standard perpetual Futures.
Pricing: Determined by market forces and may deviate from the actual Spot listing price.
Dynamic parameter adjustments: MEXC may adjust parameters like funding rate limits and intervals, tick size, max leverage, initial margin, and maintenance margin in response to market risks. Always refer to the trading page for the latest information.
4.3 Difference between pre-market Spot and Pre-Market Perpetual Futures
Pre-market Spot trading involves trading actual tokens while Pre-Market Perpetual Futures are USDT-margined derivatives and do not involve ownership of the underlying token.
4.4 Will Pre-Market Perpetual Futures affect a token's Spot listing price?
While Pre-Market Perpetual Futures can reflect market expectations, the actual Spot listing price is influenced by multiple factors and may not directly align with the Futures price. Ultimately, both prices are driven by supply and demand dynamics.
4.5 Will the transition from pre-market to official perpetual Futures cause losses?
The transition process itself does not incur any additional costs or losses. All profits and losses result from normal market movements, not the conversion mechanism.
Reminder: The Pre-Market Perpetual Futures market has lower liquidity, higher volatility, and a significant risk of forced liquidation. Prices are sensitive to market sentiment and news, and the product is inherently speculative. Please assess your risk tolerance carefully before participating.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. MEXC is not responsible for users' investment decisions.